1. National Association of Student Financial Aid Administrators © NASFAA 2009 What You Need to Know About Financial Aid

2. Slide 2 © NASFAA 2009 Topics We Will Discuss Tonight What is financial aid Cost of attendance (COA) Expected Family Contribution (EFC) What is financial need Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special circumstances

3. Slide 3 © NASFAA 2009 What is Financial Aid? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses

4. Slide 4 © NASFAA 2009 What is Cost of Attendance (COA) Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college

5. Slide 5 © NASFAA 2009 What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components –Parent contribution –Student contribution Calculated using data from a federal application form and a federal formula

6. Slide 6 © NASFAA 2009 What is Financial Need Cost of Attendance – Expected Family Contribution = Financial Need

7. Slide 7 © NASFAA 2009 Categories of Financial Aid Need-based Non need-based

8. Slide 8 © NASFAA 2009 Types of Financial Aid Scholarships Grants Loans Employment

9. Slide 9 © NASFAA 2009 Scholarships Money that does not have to be paid back Awarded on the basis of merit, skill, or unique characteristic

10. Slide 10 © NASFAA 2009 Grants Money that does not have to be paid back Usually awarded on the basis of financial need

11. Slide 11 © NASFAA 2009 Loans Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished Only borrow what is really needed Look at loans as an investment in the future

12. Slide 12 © NASFAA 2009 Employment Allows student to earn money to help pay educational costs A paycheck Non-monetary compensation, such as room and board

13. Slide 13 © NASFAA 2009 Sources of Financial Aid Federal government States Private sources Civic organizations and churches Employers

14. Slide 14 © NASFAA 2009 Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA)

15. Slide 15 © NASFAA 2009 States Residency requirements Award aid on the basis of both merit and need Use information from the FAFSA Deadlines vary by state; check paper FAFSA or FAFSA on the Web site

16. Slide 16 © NASFAA 2009 Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widely Begin researching private aid sources early

17. Slide 17 © NASFAA 2009 Employers Companies may have scholarships available to the children of employees Companies may have educational benefits for their employees

18. Slide 18 © NASFAA 2009 Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family May be filed electronically or using paper form –Available in English and Spanish

19. Slide 19 © NASFAA 2009 FAFSA Information used to calculate the Expected Family Contribution or EFC –The amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year Colleges use EFC to award financial aid

20. Slide 20 © NASFAA 2009 FAFSA May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid For the 2010-11 academic year, the FAFSA may be filed beginning January 1, 2010 Colleges may set FAFSA filing deadlines

21. Slide 21 © NASFAA 2009 FAFSA on the Web Web site: www.fafsa.gov 2010-11 FAFSA on the Web available on January 1, 2010 FAFSA on the Web Worksheet: –Used as “pre-application” worksheet –Questions follow order of FAFSA on the Web

22. Slide 22 © NASFAA 2009 Student Financial Aid Personal Identification Number (SFA PIN) Web site: www.pin.ed.gov Sign FAFSA electronically Can request PIN before January 1, 2010 Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years

23. Slide 23 © NASFAA 2009 Frequent FAFSA Errors Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth

24. Slide 24 © NASFAA 2009 FAFSA Processing Results Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted College reviews ISIR –May request additional documentation, such as copies of federal tax returns

25. Slide 25 © NASFAA 2009 Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN; Updating paper SAR (SAR Information Acknowledgment cannot be used to make corrections); or Submitting documentation to college’s financial aid office

26. Slide 26 © NASFAA 2009 Special Circumstances Cannot report on FAFSA Send explanation to financial aid office at each college

27. Slide 27 © NASFAA 2009 Special Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Student cannot obtain parent information

28. Slide 28 © NASFAA 2009